Hanwha Life Insurance 3Q Cumulative Net Profit 253.7 Billion KRW... 26.1% Decrease YoY

Hanwha General Insurance announced on the 13th that it recorded a cumulative net profit of 253.7 billion KRW for the third quarter. This represents a 26.1% decrease compared to the previous year.

The cumulative revenue was 4.226 trillion KRW, and the cumulative operating profit was 326.9 billion KRW, decreasing by 2.2% and 27.2% respectively compared to the previous year. The third quarter operating profit and net profit were 68.1 billion KRW and 51.3 billion KRW, down 59.6% and 60% respectively. Revenue decreased by 12.8% to 1.3723 trillion KRW.

The company explained that the decline in profits was due to the one-time reflection of the new International Financial Reporting Standards (IFRS 17) actuarial assumptions guideline in the third quarter. A Hanwha General Insurance official added, "Despite applying the forward-looking method to the Contractual Service Margin (CSM), the balance increased due to the growth in long-term new contract sales in the third quarter." The forward-looking method recognizes the accounting change effects fully in the current and subsequent periods' profits and losses.

Hanwha General Insurance's third quarter long-term insurance sales recorded 1.261 trillion KRW, a 5% increase compared to the previous year. New sales of long-term protection insurance products, including the newly launched Signature Women's Health Insurance in the third quarter, increased by 60% year-on-year to 18.1 billion KRW.

Hanwha General Insurance stated that based on a stable financial structure and an increase in net assets, the estimated new solvency ratio (K-ICS) as of the end of the third quarter rose by 10 percentage points from the previous quarter (260.9%) to over 270% (after transitional measures).

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